The state auditor on Thursday revealed a scathing risk review investigation, which intimates that the former Albuquerque police chief violated state and city ordinances when it came to dealings with Taser.

Four years ago, under the leadership of Ray Schultz, Albuquerque became the first major U.S. city to begin using lapel cameras. Those early cameras were called scorpions, and the Albuquerque Police Department didn't like them.

The audit shows that same year, the department began using another brand, cameras made by Taser.

Albuquerque paid Taser $1.95 million in 2013 for lapel cameras, access to Evidence.com, training and parts and labor to maintain the equipment.

The auditor's investigation said acts and communications by the department suggest that "Taser had an unfair advantage and 'inside track' to city approval, arising from prohibited conduct on the part of the chief and other APD employees."

During negotiations with Taser, the audit shows the company took Schultz and other department top brass on trips to San Diego and Scottsdale.

State Auditor Tim Keller said Taser supplied personal benefits, gifts and junkets for Schultz. Those included all-expense-paid trips and parties at nightclubs, Keller said.

"In former chief Schultz's own words, we confirmed that this contract was essentially greased, and that was the term he used to describe what he did with this contract," said Keller.

Schultz ended up taking early retirement in September 2013.

According to the investigation, Schultz was still employed by APD at the time he started working as a consultant for Taser, which appears to violate the city's conflict of interest ordinance. Shortly after Taser offered him a consulting contract, the city reached a five-year, $2 million contract with Taser.

The report has been forwarded to the New Mexico attorney general and the district attorney for possible prosecution. For the state violations, the maximum penalty is a year in jail or a $1,000 fine. For the city violations, the maximum penalty is 90 days in jail or a $500 fine.

"No one should be above the law, obviously," said Keller.

The state auditor said he reached out to Schultz multiple times, but he was always referred to Schultz's lawyer.

The State Auditor's Office launched an investigation in May 2014. It's unknown if Schultz made money from the deal.

Schultz is now an assistant police chief in Memorial Villages, Texas, outside of Houston. He's been there since January and is in charge of command control and dispatch.

"I don't think there's a story there," said Memorial Villages Police Chief Joseph Sanders. "I think there's a possibility people are trying to make a story where there is no story."

Sanders said the audit doesn't concern him very much.

"He is outstanding," said Sanders. "We're tickled to death to have him. Any department in the country would be lucky to have him."